This Top REIT Will Pay You More Than 10%

Investors looking for a high return on investment should look into the real estate sector. Specifically, check out real estate investment trusts (REITs).

Our top REIT offers a dividend yield of more than 10%, which is significantly more than the average S&P 500 yield... In fact, it's as much as an 8% difference.

This is a great way to make income investing in real estate, but it's much easier than flipping or renting a condo. Really, it's as easy as investing in a stock.

That's how REITs work. Many investors don't have the capital to purchase a lot of property, and others can't meet the financial requirements for investing in private equity firms. REITs make it so you don't need hundreds of thousands, or millions, of dollars to invest in real estate.

The best REITs normally deliver an upside on the real estate holdings, but they also deliver cash flow to investors in the form of dividends.

When you pick the right REIT, you can potentially generate massive wealth in a short period of time.

How We Found the Best REIT Today

There are a ton of niche REITs to choose from. Some focus on retail, others on hospitality, and still others on commercial and residential real estate. Today, we're going to tell you about a firm that controls the money behind some of the biggest real estate investments in the United States.

Specifically, we're referring to a mortgage REIT. It's a company that focuses on acquiring, originating, managing, and financing loans and securities for real estate.

We found this top REIT using our Money Morning Stock VQScore™ system.

It's a proprietary system that can track roughly 1,500 of the top stocks and REITs on the market daily.

The VQScore conducts a detailed analysis of every public company that is generating profits and assigns each stock score that ranges from 1 to 4.9. A higher score is better and means that a stock is more likely to produce breakout gains in the coming months.

Any stocks with a VQScore of 4 or higher are considered to be in the "Strong Buy Zone." And that's where our top REIT lands.

We'll share this best REIT now.

This Is the Top REIT to Buy Right Now

[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]Ready Capital Corp. (NYSE: RC) is our pick for the top mortgage REIT to buy now.

It's a preferred SBA lender as well as an approved lender for small balance loans through Freddie Mac. At its heart, the company functions as a small business. Its lending programs focus on mortgages for commercial properties.

Ready capital is one of only 11 non-bank lenders in the United States that is SBA-approved. This provides the company with a targeted niche, and its small size makes it a perfect candidate for future growth.

The company's real estate investments range from $3.5 million to $35 million in size. It also buys the portfolios of improving and non-performing loans, earning returns by making improvements on the loans and collecting payments from borrowers.

Institutional investors have been steadily looking for alternatives in the wake of ongoing concerns about falling interest rates.

This is why increasing numbers of investors are putting their money into dividend stocks to guarantee returns in an uncertain market. Ready Capital is a standout REIT thanks to its market-beating 9.8% dividend yield.

In an environment where the rate on the 10-year Treasury is only 1.8%, you can earn five times this amount and cash flow alone from an investment in Ready Capital.

Given this 10% dividend yield and impressive cash flow, the fact that executives own a good portion of this company stock isn't surprising.

According to data from the SEC, it looks as if insiders now control roughly 800,000 shares of Ready Capital. But company executives have created an exclusive partnership that allows them to control over 12 million shares, which equals about 28% of the company.

This partnership, which is through Sutherland REIT Holdings, ensures the company's accountability to shareholders. In short, if these executives want to expand their own wealth, they will need to do the same thing for shareholders at large.

Setting the company's dividend at 9.8% is only evidence of the company's commitment to building wealth in the future.

Ready Capital receives a VQScore of 4.2. This REIT is poised for share price gains in addition to paying a generous dividend to investors.

Ready Capital currently trades at $15.85 per share, but some analysts give it a twelve-month price target of $25. This would give today's investor a potential upside of 57%.

And even as the yield corrects to the average, with the price rising, today's investor will still maintain that 10% yield, since they bought it for $15.85.

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